New Platform Can Make Useless Loyalty Reward Points a Digital Asset Using Blockchain

Advertisement

This is a submitted sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below.

To change the global loyalty rewards program industry, the Gabrotech startup is developing several services — all combined into one platform — that enable users to turn casual reward points into an exchangeable digital asset. It includes a feature of exchanging points for cryptocurrencies or fiat currencies or spending funds via prepaid cards connected to the platform. The tokensale of the project will last until Sept. 1.

Loyalty reward programs are becoming more popular, yet they struggle to deliver an appropriate experience to customers. According to statistics provided by Gabrotech, a single household is enrolled in 25 loyalty programs on average, but almost 80 percent of customers are “generally not happy” with their programs. In addition, Loyalty Program Operators (LPOs) do not hurry to boost loyalty program usage, considering that expired bonuses are an additional profit.

The Gabrotech startup, created by a team of six blockchain enthusiasts, is striving to change an estimated $500 billion global market of loyalty reward programs by developing a universal Gabro platform on the blockchain with several key features.

The Gabro Digital Wallet allows users to gather rewards from different merchants, change them for other rewards or transfer them to other users. Rewards may also be converted into cryptocurrencies, which can then be stored, transferred or exchanged into fiat currencies.

To make different types of assets exchangeable within one platform, Gabrotech is developing the Multi-Currency Conversion Engine. It is a protocol system that matches buy and sell orders through an auction system, as stated in the project’s white paper, allowing users “to rapidly convert any supported blockchain asset to the appropriate fiat currency at market value in real-time.”

To spend funds, Gabrotech offers prepaid cards in the form of a virtual or a physical card that is connected to the main application. The company plans to offer spending options “in over 200 countries with 60 million outlets,” aiming to achieve this through a partnership with “a leading global payment services provider” that will be announced in the future, according to the official website. Cards can also be used to withdraw cash via ATMs, as well as provide a return of 0.1-0.5 percent from every transaction.

Using the Gabro Wallet, users can track the history of payments with the card, set redemption targets for reward points and get personalized notifications when achieving a certain redemption level.

All Gabrotech services utilize the Gabro token (GBO). It serves as a means of payment for merchants, while users obtain access to the platform by staking a certain amount of GBO. They can also unlock special discounts and use GBO to exchange assets.

For LPOs, Gabro offers the O2O Analytics Platform to analyze current customers’ trends and preferences. It is also a tool for geo-targeted advertising, allowing end-users in a chosen location to receive offer notifications from merchants based on demographics, interests and spending behavior.

Several partners have joined Gabro to support the creation of the platform. Espeo Blockchain is helping develop the blockchain technology, China Unicom is collaborating in the area of big data and cloud solutions, and the Adpost advertising network will test the O2O Analytics Platform and adopt the GBO token as the loyalty currency for its customers. The Deloitte Center for Financial Services is also supporting Gabro by bringing its blockchain solutions for major protocols.

Last but not least, Gabrotech has recently announced a partnership with trade.io, which “provides efficient, fair and safe blockchain technologies to financial market participants, along with a truly unique community-led crypto-to-crypto exchange.” trade.io has invested $2 million worth of GBO tokens in Gabro, and the CEO of trade.io, Jim Preissler, has become a marketing advisor for the project.

To develop the platform, Gabrotech has initiated an Initial Coin Offering (ICO) in August, with a $50 million hard cap. The event will conclude on Sept. 1, followed by the launch of the loyalty campaign. There is an opportunity of getting a bonus of up to 20 percent, depending on the amount of the contribution. The release of the platform is scheduled for December.